BBB Foods (NYSE:TBBB) Rating Increased to Strong-Buy at Citigroup

Key Points

• Citigroup upgraded BBB Foods to “strong buy,” adding to a generally positive analyst outlook. The stock has a “Moderate Buy” consensus rating and an average price target of $44.12.
• BBB Foods shares opened at $41.21 and were up 2.5%, near their 52-week high of $43.81. The company reported quarterly revenue of $1.28 billion but missed adjusted EPS estimates, posting a loss of $0.27 per share.
• Institutional ownership stands at 8.42%, with several major investors—including Wasatch Advisors, Duquesne Family Office, and Millennium Management—substantially increasing their positions.

BBB Foods (NYSE:TBBB - Get Free Report) was upgraded by research analysts at Citigroup to a "strong-buy" rating in a research note issued to investors on Friday,Zacks.com reports.

Several other research analysts have also issued reports on TBBB. Zacks Research upgraded shares of BBB Foods from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. JPMorgan Chase & Co. upped their price objective on shares of BBB Foods from $46.00 to $48.00 and gave the company an "overweight" rating in a research note on Thursday, July 16th. Scotiabank increased their price objective on shares of BBB Foods from $37.00 to $48.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 5th. HSBC upgraded shares of BBB Foods from a "hold" rating to a "buy" rating and increased their price objective for the stock from $38.00 to $47.00 in a research report on Wednesday, May 27th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of BBB Foods in a report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $44.12.

BBB Foods Trading Up 2.5%

Shares of TBBB stock opened at $41.21 on Friday. BBB Foods has a 1-year low of $23.81 and a 1-year high of $43.81. The company has a current ratio of 0.60, a quick ratio of 0.35 and a debt-to-equity ratio of 2.76. The stock has a market cap of $4.89 billion, a price-to-earnings ratio of -26.59 and a beta of -0.02. The stock has a 50-day moving average of $40.40 and a 200-day moving average of $37.39.

BBB Foods (NYSE:TBBB - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported ($0.27) EPS for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.03). BBB Foods had a negative return on equity of 79.86% and a negative net margin of 3.95%.The company had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.27 billion. On average, equities research analysts forecast that BBB Foods will post -0.61 earnings per share for the current year.

Institutional Investors Weigh In On BBB Foods

A number of large investors have recently bought and sold shares of the stock. Orbis Allan Gray Ltd bought a new stake in BBB Foods in the fourth quarter valued at $109,810,000. Principal Financial Group Inc. bought a new position in shares of BBB Foods during the 1st quarter worth about $65,967,000. Wasatch Advisors LP grew its stake in shares of BBB Foods by 314.6% in the 2nd quarter. Wasatch Advisors LP now owns 2,192,012 shares of the company's stock valued at $60,850,000 after buying an additional 1,663,338 shares during the period. Duquesne Family Office LLC grew its stake in shares of BBB Foods by 228.1% in the 3rd quarter. Duquesne Family Office LLC now owns 1,183,125 shares of the company's stock valued at $31,897,000 after buying an additional 822,575 shares during the period. Finally, Millennium Management LLC grew its stake in shares of BBB Foods by 296.5% in the 4th quarter. Millennium Management LLC now owns 778,613 shares of the company's stock valued at $25,998,000 after buying an additional 582,262 shares during the period. 8.42% of the stock is currently owned by institutional investors and hedge funds.

About BBB Foods

BBB Foods Inc, through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels.

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